Foreign Futures and Options Transactions, 15359-15363 [2020-05097]
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Federal Register / Vol. 85, No. 53 / Wednesday, March 18, 2020 / Rules and Regulations
(2) Information required. Each claim
for medical monitoring, diagnosis, and
treatment under this program will be in
writing and include, at a minimum:
(i) Statement of eligibility describing
the employment and spaceflight history
that justifies medical monitoring,
diagnosis, and treatment under this
program;
(ii) History and diagnosis of medical
or psychological condition;
(iii) Medical documentation in
support of the claim. Healthcare
providers must be licensed and
permitted to practice under state law
and not be on the Centers for Medicare
& Medicaid Services (CMS) List of
Excluded Individuals and Entities,
found at: https://healthdata.gov/
dataset/list-excluded-individuals-andentities;
(iv) Documentation of the decisions
and/or payments made by the primary
payer (i.e., other U.S. Government
agencies and/or private health insurer)
regarding the claim;
(v) Justification for determination that
the psychological or medical condition
is associated with spaceflight;
(vi) Expenses for which they are
seeking reimbursement, to include
documentation of all out-of-pocket
costs; and
(vii) The signature of the eligible
individual or their authorized
representative.
(3) Responsibility for perfecting claim.
It is the responsibility of the eligible
individual, authorized representative, or
the authorized provider acting on behalf
of the eligible individual to perfect a
claim for submission. NASA will assist
eligible individuals with claims
submission, but is not authorized to
prepare a claim on behalf of the eligible
individual.
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§ 1241.35
Claims review and decisions.
(a) NASA will establish the TREAT
Astronauts Act Board (TAAB) to review
claims for medical monitoring,
diagnosis, and treatment under this
program. This review is independent of
any review conducted by primary
payers.
(b) The TAAB will review each claim
submitted by the eligible individual, in
consultation with specialists, as
appropriate. A typical case will be
reviewed within 30 calendar days, but
cases that are more complex may take
additional time.
(c) The TAAB will make a
recommendation to the Administrator or
designee for each claim stating whether
the condition is determined to be
spaceflight associated.
(d) For those eligible individuals who
have had other exposures in addition to
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those experienced during their career as
active U.S. Government astronauts or
payload specialists, the TAAB will
consider that history when making its
recommendation.
(e) The NASA Administrator or
designee will review each claim and
associated TAAB recommendation to
determine whether the claim should be
approved or denied. A typical case can
be reviewed within 30 calendar days,
but cases that are more complex may
take additional time.
(f) The decision will be provided to
the eligible individual within seven
calendar days of the final decision by
the NASA Administrator or designee.
Decisions not in favor of the eligible
individual will include information on
how to request reconsideration.
(g) An eligible individual or their
authorized representative may request
reconsideration of the decision at any
time if new information is obtained that
enhances the claim. Reconsideration
requests can be made to the JSC Flight
Medicine Clinic.
(h) Requests for reconsideration are
reviewed by the TAAB and decisions
made by the Administrator or designee,
following the same process described in
paragraphs (b) through (f) of this
section.
§ 1241.40
Payment of approved claims.
(a) The NASA Administrator or
designee is responsible for ensuring that
medical monitoring, diagnosis, and
treatment to eligible individuals under
this program is paid only to the extent
described in this part.
(b) Payment for medical monitoring,
diagnosis, and treatment is applied
secondarily to primary payers and may
include the remaining out-of-pocket
costs from primary payer coverage.
(c) NASA will pay necessary travel
expenses related to this program
consistent with the Federal Travel
Regulations.
(d) NASA may provide conditional
payments for medical monitoring,
diagnosis, and treatment that is
obligated to be paid by the U.S.
Government or other primary payers
prior to a final decision by NASA in
accordance with § 1241.35. Such
requests for conditional payments can
be made to JSC Flight Medicine Clinic.
Such payments are permitted when
payment for such medical monitoring,
diagnosis, and treatment has either not
been made or will not be made
promptly.
(1) NASA may seek to recover costs
associated with conditional payments
from the U.S. Government, private
health insurance company, or other
primary payer as allowable by law.
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15359
(2) If the claim is denied in
accordance with § 1241.35, NASA may
seek to recover such conditional
payments from the eligible individual in
accordance with 31 U.S.C. Chapter 37.
§ 1241.45 Collaboration with other
agencies.
Copies of records generated from
medical monitoring, diagnosis, and
treatment collected by primary payer
facilities and/or relevant health care
providers will be acquired by NASA.
NASA will collaborate with the
Department of Defense Military Health
System, Department of Veterans Affairs,
and Department of Labor Office of
Workers’ Compensation and other
entities for acquisition of copies of these
medical records as allowed by law.
§ 1241.50 Records, confidentiality, privacy,
and data use.
(a) Records on individuals created or
obtained pursuant to this regulation that
are subject to the Privacy Act of 1974,
as amended, 5 U.S.C. 552a, will be
maintained in accordance with the
NASA’s Privacy Act System of Records.
(b) NASA will, as necessary, enter
into data sharing agreements with other
agencies and/or entities to receive such
data and/or seek signed medical releases
from the eligible individuals, or their
authorized representatives, in
accordance with law.
(c) NASA’s collection, use, and
disclosure of this data will be in
accordance with the Privacy Act of
1974, NASA’s implementing regulations
at 14 CFR part 1212, and NASA’s
privacy policies, where applicable.
Nanette Smith,
Team Lead, NASA Directives and
Regulations.
[FR Doc. 2020–04784 Filed 3–17–20; 8:45 am]
BILLING CODE 7510–13–P
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 30
RIN 3038–AE86
Foreign Futures and Options
Transactions
Commodity Futures Trading
Commission.
ACTION: Final rule.
AGENCY:
The Commodity Futures
Trading Commission (Commission) is
issuing a final rule that amends its
regulations governing the offer and sale
of foreign futures and options to
customers located in the U.S. The
amended regulation codifies the process
SUMMARY:
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by which the Commission may
terminate exemptive relief issued
pursuant to its regulations.
DATES: The rule is effective March 18,
2020.
FOR FURTHER INFORMATION CONTACT:
Joshua Sterling, Director, jsterling@
cftc.gov; Frank Fisanich, Chief Counsel,
ffisanich@cftc.gov; or Andrew Chapin,
Associate Chief Counsel, achapin@
cftc.gov, Division of Swap Dealer and
Intermediary Oversight, Commodity
Futures Trading Commission, 1155 21st
Street NW, Washington, DC 20581, (202)
418–5000.
SUPPLEMENTARY INFORMATION:
I. Background
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Part 30 of the Commission’s
regulations governs the offer and sale of
futures and option contracts traded on
or subject to the regulations of a foreign
board of trade (foreign futures and
options) to customers located in the
U.S.1 These regulations set forth
requirements for foreign firms acting in
the capacity of a futures commission
merchant (FCM), introducing broker,
commodity pool operator and
commodity trading adviser with respect
to the offer and sale of foreign futures
and options to U.S. customers and are
designed to ensure that such products
offered and sold in the U.S. are subject
to regulatory safeguards comparable to
those applicable to transactions entered
into on designated contract markets.
Pursuant to § 30.10(a), persons located
outside the U.S. and subject to a
comparable regulatory structure in the
jurisdiction in which they are located
may seek an exemption from certain of
the requirements under part 30 of the
Commission’s regulations based upon
compliance with the regulatory
requirements of the person’s home
jurisdiction.2
A petition for exemption pursuant to
§ 30.10(a) typically is filed on behalf of
persons located and doing business
outside the U.S. that seek access to U.S.
customers by: (1) A governmental
agency responsible for implementing
and enforcing the foreign regulatory
program; or (2) a self-regulatory
organization (SRO) of which such
persons are members. A petitioner who
seeks an exemption pursuant to
§ 30.10(a) must set forth with
particularity the comparable regulations
1 17
CFR part 30. The Commission promulgated
part 30 of its regulations in 1987. See Foreign
Futures and Foreign Options Transactions, 52 FR
28980 (Aug. 5, 1987). The Commission promulgated
these regulations pursuant to Section 2(b)(2)(A) of
the Commodity Exchange Act (CEA), 7 U.S.C.
6(b)(2)(A).
2 17 CFR 30.10(a).
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applicable in the jurisdiction in which
that person is located. The Commission
may, in its discretion, grant such an
exemption if it is demonstrated to the
Commission’s satisfaction that the
exemption is not otherwise contrary to
the public interest or to the purposes of
the provision from which exemption is
sought. Appendix A to part 30,
Interpretative Statement With Respect to
the Commission’s Exemptive Authority
Under § 30.10 of Its Rules (appendix A),
generally sets forth the elements the
Commission will evaluate in
determining whether a particular
regulatory program may be found to be
comparable for purposes of exemptive
relief pursuant to § 30.10,3 and
specifically states that in considering an
exemption request, the Commission will
take into account the extent to which
United States persons or contracts
regulated by the Commission are
permitted to engage in futures-related
activities or be offered in the country
from which an exemption is sought.4
If the Commission determines that
relief pursuant to § 30.10(a) is
appropriate, the Commission issues an
Order to the person that filed the
petition for relief (typically the foreign
regulator or SRO) that sets forth
conditions governing such relief. After
the relief is granted to the foreign
regulator or SRO, persons under its
regulatory oversight and located and
doing business outside the U.S. may
solicit or accept orders directly from
U.S. customers for foreign futures or
options transactions and, in the case of
a person acting in the capacity of an
FCM, accept customer money or other
property, without registering under the
CEA in the appropriate capacity.5 The
Commission reserves the right within
each Order issued pursuant to § 30.10(a)
to condition, modify, suspend,
terminate, or otherwise restrict the
exemptive relief granted, as appropriate,
on its own motion.
II. The Proposal
The Commission published for public
comment in the Federal Register on July
5, 2019 a notice of proposed rulemaking
(the Proposal) proposing amendments to
regulation § 30.10.6 As noted above,
§ 30.10(a) sets forth the process by
which any person adversely affected by
any requirement set forth in part 30 may
file a petition with the Commission
seeking an exemption. While § 30.10(a)
provides that the Commission may grant
3 52
FR 28990, 29001.
CFR part 30, appendix A.
5 The term ‘‘futures commission merchant’’ is
defined in § 1.3, 17 CFR 1.3.
6 See Foreign Futures and Options Transactions,
84 FR 32105 (Jul. 5, 2019).
4 17
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an exemption subject to any terms or
conditions it may find appropriate, the
regulation does not provide a specific
course of action should the Commission
determine that exemptive relief is no
longer warranted. Accordingly, the
Commission proposed to amend § 30.10
by adding a new paragraph (c) to codify
the process by which the Commission
may terminate exemptive relief issued
pursuant to paragraph (a).
Specifically, the Proposal provided
that the Commission may terminate
exemptive relief, after appropriate
notice and an opportunity to respond,
under certain circumstances. First, the
Commission could terminate the relief
should it determine that there has been
a material change or omission in the
facts and circumstances pursuant to
which relief was granted that
demonstrate that the standards set forth
in appendix A forming the basis for
granting such relief are no longer met.
Second, the Commission could
terminate relief should it determine that
the continued exemptive relief would be
contrary to the public interest or
inconsistent with the purposes of the
regulation § 30.10 exemption. For
example, in considering whether
exemptive relief continues to be
warranted, the Commission could take
into account any material changes in the
applicable regulatory regime, including
a lack of comity relating to the
execution or clearing of any commodity
interest 7 subject to the Commission’s
exclusive jurisdiction.8 Third, the
Commission could terminate relief
should it determine that informationsharing arrangements no longer
adequately support exemptive relief.
The Proposal also provided any
affected person with an appropriate
opportunity to respond to any notice by
the Commission issued pursuant to
§ 30.10(c)(1). The affected person is the
foreign regulator, SRO, or other entity
that filed the original petition for relief.9
The Commission proposed that the
timing for any opportunity to respond
would take into account the exigency of
circumstances. The Commission noted
that it is able to suspend immediately
the relief set forth in any Order issued
pursuant to § 30.10(a) should exigent
circumstances occur. Thus, the Proposal
stated that the affected party would
have a period of 30 business days, or
7 The term ‘‘commodity interest’’ includes, among
other things, any contract for the purchase or sale
of a commodity for future delivery, or any swap as
defined in the CEA. See 17 CFR 1.3.
8 The Commission’s exclusive jurisdiction is set
forth in 7 U.S.C. 2(a).
9 Paragraph (a) of the current regulation states that
any person adversely affected by any requirement
of this part may file a petition. 17 CFR 30.10(a).
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such time as the Commission permits in
writing to respond to the notification.
This time period could be less than 30
business days depending on the
exigency of the circumstances and other
relevant considerations.
Should the Commission ultimately
determine to terminate any exemptive
relief, it proposed that the Commission
would be required to notify the affected
person in writing setting forth the
particular reasons why relief is no
longer warranted and issue an Order
terminating exemptive relief to be
published in the Federal Register.
Proposed § 30.10(c)(2)–(4) provided
further that any Order terminating
exemptive relief would set forth an
appropriate time frame for the orderly
transfer or close out of any accounts
held by U.S. customers impacted by
such an Order. Finally, proposed § 30.10
(c)(5) provided that any person whose
relief has been terminated may re-apply
for exemptive relief 360 days after the
issuance of the relevant Order by the
Commission if the deficiency causing
the revocation has been cured or
relevant facts and circumstances have
changed.
III. Comments
The Commission received three
comment letters on the Proposal from
the Intercontinental Exchange, Inc.
(ICE); the Futures Industry Association
(FIA); and the CME Group Inc. (CME
Group).10 Each of the commenters
commended the long-standing success
of the Commission’s program for
regulatory deference set forth in § 30.10
and generally supported the Proposal to
provide greater transparency to the
process by which the Commission may
terminate exemptive relief.
Both CME Group and FIA urged the
Commission to adhere to the standard
set forth in appendix A regarding
principles of regulatory comity. In
particular, these commenters noted that
the Commission, in consideration of any
petition submitted pursuant to
§ 30.10(a), should take into account the
extent to which U.S. persons or
contracts regulated by the Commission
are permitted to engage in futuresrelated activities or be offered in the
country from which an exemption is
sought. Both commenters recognized
that complementary regulatory
programs of mutual recognition across
jurisdictional boundaries reduce
artificial barriers to market access,
encourage liquidity, promote price
discovery, and mitigate market
10 The comment letters can be found at: https://
comments.cftc.gov/PublicComments/Comment
List.aspx?id=3002.
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fragmentation. Otherwise, market
intermediaries will be required to
comply with more costly, overlapping
regulation that fail to take into account
the market structure and participants in
local markets.
With respect to specific rule text, both
ICE and FIA requested that the final
regulation provide all market
participants—and not simply the foreign
regulator or SRO to which the Order
was issued—with notice and
opportunity to comment on any
notification by the Commission of its
intention to terminate exemptive relief.
Both commenters noted that market
intermediaries taking advantage of such
relief would be better positioned to plan
for, and potentially mitigate, any
possible business and market
disruptions resulting from the
termination of relief with formal notice
from the Commission.
IV. Final Rule
The Commission has considered the
comments from ICE, FIA, and CME
Group and is adopting § 30.10(c) as
proposed, with two modifications. The
Commission agrees with comments that
market intermediaries taking advantage
of such relief and other market
participants impacted by the potential
termination of relief may provide
helpful insight to the Commission as it
considers whether termination is
appropriate. Accordingly, the
Commission is adopting a change to
proposed § 30.10(c)(2) to provide parties
other than the affected person with
notice of and opportunity to comment
on any potential termination of relief.
Revised § 30.10(c)(2) will require the
Commission to publish on its website
any notice of an intention to terminate
relief. The Commission expects that the
notice would be published on the
website at substantially the same time
that it is sent to the affected person,
subject to any logistical or similar
considerations. In this manner, market
intermediaries—and derivatively, their
U.S. customers—will be prompted to
communicate with the Commission
regarding any issues relevant to the
potential termination of relief, including
those regarding the potential transfer of
customer accounts and property. The
Commission also is adopting a
corresponding change to § 30.10(c)(3) to
provide persons other than the affected
party with the opportunity to respond to
the notification in writing no later than
30 business days following the
publication on the Commission’s
website of the notification, or at such
time as the Commission permits in
writing (which could be more or less
than 30 business days, depending on the
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exigency of the circumstances and other
relevant considerations).
V. Related Matters
A. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
requires that Federal agencies consider
whether the rules that they issue will
have a significant economic impact on
a substantial number of small entities
and, if so, to provide a regulatory
flexibility analysis regarding the impact
on those entities. Each Federal agency is
required to conduct an initial and final
regulatory flexibility analysis for each
rule of general applicability for which
the agency issues a general notice of
proposed rulemaking.11
As noted in the Proposal, this rule
would affect foreign members of foreign
boards of trade who perform the
functions of an FCM. While the RFA
may not apply to foreign entities,12 the
Commission previously determined that
FCMs should be excluded from the
definition of small entities.13
Accordingly, the Chairman, on behalf of
the Commission, hereby certifies,
pursuant to 5 U.S.C. 605(b), that the
final regulations will not have a
significant impact on a substantial
number of small entities.
B. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(PRA) imposes certain requirements on
Federal agencies, including the
Commission, in connection with their
conducting or sponsoring any collection
of information, as defined by the PRA.
Under the PRA, an agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless it displays a
currently valid control number from the
Office of Management and Budget
(OMB). The final regulations adopted
would result in a collection of
information within the meaning of the
PRA, as discussed below. Therefore, the
Commission is submitting the Final
Rules to OMB for approval.
As discussed in the Proposal, final
§ 30.10(c)(2) will result in a collection of
information within the meaning of the
PRA, as discussed below. This final rule
contains a collection of information for
11 See
U.S.C. 601 et seq.
13 CFR 121.105 (noting that a small
business is a business entity organized for profit,
with a place of business located in the U.S., and
which operates primarily within the U.S., or which
makes a significant contribution to the U.S.
economy through payment of taxes or use of
American products, materials or labor).
13 See, e.g., Policy Statement and Establishment of
Definitions of ‘‘Small Entities’’ for purposes of the
Regulatory Flexibility Act, 47 FR 18618, 18619
(Apr. 30, 1982).
12 See
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which the Commission has not
previously received control numbers
from the Office of Management and
Budget (OMB). As noted in the
Proposal, the Commission has
submitted to OMB an information
collection request to obtain an OMB
control number for the collection
contained in this proposal in
accordance with 44 U.S.C. 3507(d) and
5 CFR 1320.11.
Specifically, final § 30.10(c)(3)
provides any party affected by the
Commission’s determination to
terminate relief with the opportunity to
respond to the notification in writing no
later than 30 business days following
the receipt of the notification, or at such
time as the Commission permits in
writing. The Commission estimates that,
if adopted, it would receive one
response to this collection resulting in
eight burden hours annually.
In the Proposal, the Commission
invited the public and other Federal
agencies to comment on any aspect of
the proposed information collection
requirements discussed therein.14 The
Commission did not receive any such
comments.
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C. Cost-Benefit Considerations
1. Summary
Section 15(a) of the CEA 15 requires
the Commission to consider the costs
and benefits of its actions before
promulgating a regulation under the
CEA or issuing certain orders. The
baseline for this consideration of costs
and benefits is the current status, where
the Commission has not codified the
procedures by which the Commission
may terminate exemptive relief issued
pursuant to § 30.10(a). As noted in the
Proposal, the Commission has not yet
terminated such relief, so the
Commission has not yet implemented a
procedure for terminating such
exemptions. Moreover, the Commission
has limited relevant or useful
quantitative data to assess the potential
costs and benefits of the final regulation
§ 30.10(c). Accordingly, the Commission
generally considered the costs and
benefits of final regulation § 30.10(c) in
qualitative terms. The Commission
invited comment on its preliminary
consideration of the costs and benefits
associated with the proposed changes to
§ 30.10,16 and received no such
comments.
As a general matter, final § 30.10(c)
will inform the public, affected persons
and market participants of the basis on
which the Commission may terminate
14 Proposal,
84 FR at 32107.
U.S.C. 19(a).
16 Id.
exemptive relief pursuant to § 30.10(a)
and establishing a process whereby an
affected party would first be notified
and given an opportunity to respond
before the Commission would take any
action. The affected party will benefit
from the clear process set forth in the
final regulation. The affected person
will only incur costs in connection with
the final regulation to the extent that the
Commission identified a basis for
terminating the exemption and notified
the party of that basis. Similarly, market
participants and other interested
members of the public would incur
costs in connection with responding to
the posting of the notice on the
Commission’s website. Those costs
would include reviewing and
responding to the notification, which
the Commission believes would vary
depending on the circumstances,
including the stated basis for
termination. As stated above, the
Commission believes that 30 days, or
such additional or less time as the
Commission may permit in writing due
to any exigent circumstances, will be
sufficient for the affected person and
other interested parties to develop a
response while allowing the
Commission to take timely action to
consider their interests.
The Commission requested comment
on the potential costs and benefits of
proposed § 30.10(c), including, where
possible, quantitative data, and on any
alternative proposals that might achieve
the objectives of the proposed
regulation, and the costs and benefits
associated with any such alternatives.17
The Commission did not receive any
such comments.
2. Section 15(a) Factors
Section 15(a) specifies that the costs
and benefits shall be evaluated in light
of five broad areas of market and public
concern: (1) Protection of market
participants and the public; (2)
efficiency, competitiveness, and
financial integrity of the futures
markets; (3) price discovery; (4) sound
risk management practices; and (5) other
public interest considerations.
The Commission is considering the
costs and benefits of these rules in light
of the specific provisions of Section
15(a) of the CEA:
a. Protection of Market Participants
and the Public. Section 15(a)(2)(A) of
the CEA requires the Commission to
evaluate the costs and benefits of a
proposed regulation in light of
protection of market participants and
the public. The final regulations will
benefit affected persons, market
15 7
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17 Proposal,
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participants and the public by setting
forth a clear procedure for the
Commission’s termination of exemptive
relief issued pursuant to § 30.10(a). The
final regulations will provide affected
persons, market participants and the
public with a reasonable timeframe to
communicate any concerns to the
Commission and, if necessary, for the
orderly transfer of any accounts held by
U.S. customers impacted by an order
terminating relief.
b. Efficiency, Competitiveness, and
Financial Integrity of Markets. Section
15(a)(2)(B) of the CEA requires the
Commission to evaluate the costs and
benefits of a proposed regulation in light
of efficiency, competitiveness, and
financial integrity considerations. The
Commission has not identified a
specific effect on the efficiency and
financial integrity of markets as a result
of the proposed regulations. There may
be a minor impact from termination of
an exemption on the competitiveness of
futures markets. Foreign futures and
options may compete directly or
indirectly with contracts listed on
DCMs. Due to legal restrictions in
foreign jurisdictions, the only way that
U.S. customers may access certain
foreign contracts may be through an
exempt foreign firm. The termination of
any exemptive relief therefore may
reduce the available options for U.S.
market participants.
c. Price Discovery. Section 15(a)(2)(C)
of the CEA requires the Commission to
evaluate the costs and benefits of a
proposed regulation in light of price
discovery considerations. The
Commission believes that the final
regulations will not have any significant
impact on price discovery.
d. Sound Risk Management Practices.
Section 15(a)(2)(D) of the CEA requires
the Commission to evaluate the costs
and benefits of a proposed regulation in
light of sound risk management
practices. The Commission believes that
the final regulations will not have a
large impact on the risk management
practices of the futures and options
industry. However, to the extent that
having a transparent process for
terminating exemptions issued to
foreign regulatory or self-regulatory
organizations on behalf of individual
firms may encourage an increased offer
and sale of contracts that more closely
match the hedging needs of particular
U.S. market participants, the practice of
sound risk management might be
improved slightly.
e. Other Public Interest
Considerations. Section 15(a)(2)(E) of
the CEA requires the Commission to
evaluate the costs and benefits of a
proposed regulation in light of other
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public considerations. The Commission
believes that having a transparent
process for terminating an exemption
from registration will, in the event that
the Commission believes such a
termination may be warranted, provide
an appropriate notice and opportunity
to comment to the public, affected
persons, exempt § 30.10 firms, and
market participants who may be affected
by the termination of an order of § 30.10
exemption.
3. Antitrust Considerations
Section 15(b) of the CEA requires the
Commission to take into consideration
the public interest to be protected by the
antitrust laws and endeavor to take the
least competitive means of achieving the
objectives of the CEA in issuing any
order or adopting any Commission
regulation. The Commission has
determined that the final amendments
to § 30.10 have no anticompetitive
effects. The final regulation is a
procedural rule that will not cause a
change in the behavior that would alter
the level playing fields of regulated
entities.
List of Subjects in 17 CFR Part 30
Consumer protection, Fraud.
For the reasons set forth in the
preamble, the Commodity Futures
Trading Commission amends 17 CFR
part 30 as follows:
PART 30—FOREIGN FUTURES AND
OPTIONS TRANSACTIONS
1. The authority citation for part 30
continues to read as follows:
■
Authority: 7 U.S.C. 1a, 2, 6, 6c, and 12a,
unless otherwise noted.
2. Add paragraph (c) to § 30.10 to read
as follows:
■
§ 30.10
Petitions for exemption.
jbell on DSKJLSW7X2PROD with RULES
*
*
*
*
*
(c)(1) The Commission may, in its
discretion and upon its own initiative,
terminate the exemptive relief granted
to any person pursuant to paragraph (a)
of this section, after appropriate notice
and an opportunity to respond, if the
Commission determines that:
(i) There is a material change or
omission in the facts and circumstances
pursuant to which relief was granted
that demonstrate that the standards set
forth in appendix A to this part forming
the basis for granting such relief are no
longer met; or
(ii) The continued effectiveness of any
such exemptive relief would be contrary
to the public interest or inconsistent
with the purposes of the exemption
under paragraph (a) of this section; or
VerDate Sep<11>2014
18:10 Mar 17, 2020
Jkt 250001
(iii) The arrangements in place for the
sharing of information with the
Commission do not warrant
continuation of the exemptive relief
granted.
(2) The Commission shall provide
written notification to the affected party
of its intention to terminate an
exemption pursuant to paragraph (a) of
this section and the basis for that
intention. Such written notification also
shall be published prominently on the
Commission’s website.
(3) The affected party may respond to
the notification in writing no later than
30 business days following the receipt
of the notification, or at such time as the
Commission permits in writing. Any
other person may respond to the
notification in writing no later than 30
business days following the publication
on the Commission’s website of the
written notice issued to the affected
party, or at such time as the
Commission permits in writing.
(4) If, after providing any affected
person appropriate notice and
opportunity to respond, the Commission
determines that relief pursuant to
paragraph (a) of this section is no longer
warranted, the Commission shall notify
the person of such determination in
writing, including the particular reasons
why relief is no longer warranted, and
issue an Order Terminating Exemptive
Relief. Any Order Terminating
Exemptive Relief shall provide an
appropriate timeframe for the orderly
transfer or close out of any accounts
held by U.S. customers impacted by
such an Order.
(5) Any person whose relief has been
terminated may apply for exemptive
relief 360 days after the issuance of the
Order Terminating Exemptive Relief if
the deficiency causing the revocation
has been cured or relevant facts and
circumstances have changed.
Issued in Washington, DC, on March 9,
2020, by the Commission.
Robert Sidman,
Deputy Secretary of the Commission.
Note: The following appendix will not
appear in the Code of Federal Regulations.
Appendix to Foreign Futures and
Options Transactions—Commission
Voting Summary
On this matter, Chairman Tarbert and
Commissioners Quintenz, Behnam, Stump,
and Berkovitz voted in the affirmative. No
Commissioner voted in the negative.
[FR Doc. 2020–05097 Filed 3–17–20; 8:45 am]
BILLING CODE 6351–01–P
PO 00000
Frm 00017
Fmt 4700
Sfmt 4700
15363
DEPARTMENT OF HOMELAND
SECURITY
U.S. Customs and Border Protection
DEPARTMENT OF THE TREASURY
19 CFR Part 12
[CBP Dec. 20–04]
RIN 1515–AE53
Extension of Import Restrictions on
Archaeological Material and Imposition
of Import Restrictions on
Ecclesiastical Ethnological Material
From El Salvador
U.S. Customs and Border
Protection, Department of Homeland
Security; Department of the Treasury.
ACTION: Final rule.
AGENCY:
This document amends the
U.S. Customs and Border Protection
(CBP) regulations to reflect an extension
of import restrictions on certain
archaeological material from the
Republic of El Salvador (El Salvador).
The document further amends the
Designated List contained in T.D. 95–20,
which describes the types of articles to
which the import restrictions apply, to
reflect the addition of certain
ecclesiastical ethnological material. The
import restrictions, which were last
extended by CBP Dec. 15–05, were due
to expire on March 8, 2020, unless
extended. The Assistant Secretary for
Educational and Cultural Affairs, United
States Department of State, has
determined that conditions continue to
warrant the imposition of import
restrictions on archeological material
from El Salvador. Additionally, the
Assistant Secretary for Educational and
Cultural Affairs, United States
Department of State, has made the
requisite determinations for adding
import restrictions on certain categories
of ecclesiastical ethnological material
from the Colonial period through the
first half of the twentieth century. On
March 2, 2020, the Government of the
United States and the Government of El
Salvador entered into a Memorandum of
Understanding (MOU) that supersedes
the existing agreement that first became
effective on March 8, 1995. Pursuant to
the new MOU, the import restrictions
for archaeological material will remain
in effect for an additional five years
until March 2, 2025. The new MOU
further covers import restrictions on
ecclesiastical ethnological material until
March 2, 2025.
DATES: Effective March 16, 2020.
FOR FURTHER INFORMATION CONTACT: For
legal aspects, Lisa L. Burley, Chief,
SUMMARY:
E:\FR\FM\18MRR1.SGM
18MRR1
]]>Agencies
[Federal Register Volume 85, Number 53 (Wednesday, March 18, 2020)]
[Rules and Regulations]
[Pages 15359-15363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05097]
=======================================================================
-----------------------------------------------------------------------
COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 30
RIN 3038-AE86
Foreign Futures and Options Transactions
AGENCY: Commodity Futures Trading Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commodity Futures Trading Commission (Commission) is
issuing a final rule that amends its regulations governing the offer
and sale of foreign futures and options to customers located in the
U.S. The amended regulation codifies the process
[[Page 15360]]
by which the Commission may terminate exemptive relief issued pursuant
to its regulations.
DATES: The rule is effective March 18, 2020.
FOR FURTHER INFORMATION CONTACT: Joshua Sterling, Director,
[email protected]; Frank Fisanich, Chief Counsel, [email protected];
or Andrew Chapin, Associate Chief Counsel, [email protected], Division
of Swap Dealer and Intermediary Oversight, Commodity Futures Trading
Commission, 1155 21st Street NW, Washington, DC 20581, (202) 418-5000.
SUPPLEMENTARY INFORMATION:
I. Background
Part 30 of the Commission's regulations governs the offer and sale
of futures and option contracts traded on or subject to the regulations
of a foreign board of trade (foreign futures and options) to customers
located in the U.S.\1\ These regulations set forth requirements for
foreign firms acting in the capacity of a futures commission merchant
(FCM), introducing broker, commodity pool operator and commodity
trading adviser with respect to the offer and sale of foreign futures
and options to U.S. customers and are designed to ensure that such
products offered and sold in the U.S. are subject to regulatory
safeguards comparable to those applicable to transactions entered into
on designated contract markets. Pursuant to Sec. 30.10(a), persons
located outside the U.S. and subject to a comparable regulatory
structure in the jurisdiction in which they are located may seek an
exemption from certain of the requirements under part 30 of the
Commission's regulations based upon compliance with the regulatory
requirements of the person's home jurisdiction.\2\
---------------------------------------------------------------------------
\1\ 17 CFR part 30. The Commission promulgated part 30 of its
regulations in 1987. See Foreign Futures and Foreign Options
Transactions, 52 FR 28980 (Aug. 5, 1987). The Commission promulgated
these regulations pursuant to Section 2(b)(2)(A) of the Commodity
Exchange Act (CEA), 7 U.S.C. 6(b)(2)(A).
\2\ 17 CFR 30.10(a).
---------------------------------------------------------------------------
A petition for exemption pursuant to Sec. 30.10(a) typically is
filed on behalf of persons located and doing business outside the U.S.
that seek access to U.S. customers by: (1) A governmental agency
responsible for implementing and enforcing the foreign regulatory
program; or (2) a self-regulatory organization (SRO) of which such
persons are members. A petitioner who seeks an exemption pursuant to
Sec. 30.10(a) must set forth with particularity the comparable
regulations applicable in the jurisdiction in which that person is
located. The Commission may, in its discretion, grant such an exemption
if it is demonstrated to the Commission's satisfaction that the
exemption is not otherwise contrary to the public interest or to the
purposes of the provision from which exemption is sought. Appendix A to
part 30, Interpretative Statement With Respect to the Commission's
Exemptive Authority Under Sec. 30.10 of Its Rules (appendix A),
generally sets forth the elements the Commission will evaluate in
determining whether a particular regulatory program may be found to be
comparable for purposes of exemptive relief pursuant to Sec. 30.10,\3\
and specifically states that in considering an exemption request, the
Commission will take into account the extent to which United States
persons or contracts regulated by the Commission are permitted to
engage in futures-related activities or be offered in the country from
which an exemption is sought.\4\
---------------------------------------------------------------------------
\3\ 52 FR 28990, 29001.
\4\ 17 CFR part 30, appendix A.
---------------------------------------------------------------------------
If the Commission determines that relief pursuant to Sec. 30.10(a)
is appropriate, the Commission issues an Order to the person that filed
the petition for relief (typically the foreign regulator or SRO) that
sets forth conditions governing such relief. After the relief is
granted to the foreign regulator or SRO, persons under its regulatory
oversight and located and doing business outside the U.S. may solicit
or accept orders directly from U.S. customers for foreign futures or
options transactions and, in the case of a person acting in the
capacity of an FCM, accept customer money or other property, without
registering under the CEA in the appropriate capacity.\5\ The
Commission reserves the right within each Order issued pursuant to
Sec. 30.10(a) to condition, modify, suspend, terminate, or otherwise
restrict the exemptive relief granted, as appropriate, on its own
motion.
---------------------------------------------------------------------------
\5\ The term ``futures commission merchant'' is defined in Sec.
1.3, 17 CFR 1.3.
---------------------------------------------------------------------------
II. The Proposal
The Commission published for public comment in the Federal Register
on July 5, 2019 a notice of proposed rulemaking (the Proposal)
proposing amendments to regulation Sec. 30.10.\6\ As noted above,
Sec. 30.10(a) sets forth the process by which any person adversely
affected by any requirement set forth in part 30 may file a petition
with the Commission seeking an exemption. While Sec. 30.10(a) provides
that the Commission may grant an exemption subject to any terms or
conditions it may find appropriate, the regulation does not provide a
specific course of action should the Commission determine that
exemptive relief is no longer warranted. Accordingly, the Commission
proposed to amend Sec. 30.10 by adding a new paragraph (c) to codify
the process by which the Commission may terminate exemptive relief
issued pursuant to paragraph (a).
---------------------------------------------------------------------------
\6\ See Foreign Futures and Options Transactions, 84 FR 32105
(Jul. 5, 2019).
---------------------------------------------------------------------------
Specifically, the Proposal provided that the Commission may
terminate exemptive relief, after appropriate notice and an opportunity
to respond, under certain circumstances. First, the Commission could
terminate the relief should it determine that there has been a material
change or omission in the facts and circumstances pursuant to which
relief was granted that demonstrate that the standards set forth in
appendix A forming the basis for granting such relief are no longer
met. Second, the Commission could terminate relief should it determine
that the continued exemptive relief would be contrary to the public
interest or inconsistent with the purposes of the regulation Sec.
30.10 exemption. For example, in considering whether exemptive relief
continues to be warranted, the Commission could take into account any
material changes in the applicable regulatory regime, including a lack
of comity relating to the execution or clearing of any commodity
interest \7\ subject to the Commission's exclusive jurisdiction.\8\
Third, the Commission could terminate relief should it determine that
information-sharing arrangements no longer adequately support exemptive
relief.
---------------------------------------------------------------------------
\7\ The term ``commodity interest'' includes, among other
things, any contract for the purchase or sale of a commodity for
future delivery, or any swap as defined in the CEA. See 17 CFR 1.3.
\8\ The Commission's exclusive jurisdiction is set forth in 7
U.S.C. 2(a).
---------------------------------------------------------------------------
The Proposal also provided any affected person with an appropriate
opportunity to respond to any notice by the Commission issued pursuant
to Sec. 30.10(c)(1). The affected person is the foreign regulator,
SRO, or other entity that filed the original petition for relief.\9\
The Commission proposed that the timing for any opportunity to respond
would take into account the exigency of circumstances. The Commission
noted that it is able to suspend immediately the relief set forth in
any Order issued pursuant to Sec. 30.10(a) should exigent
circumstances occur. Thus, the Proposal stated that the affected party
would have a period of 30 business days, or
[[Page 15361]]
such time as the Commission permits in writing to respond to the
notification. This time period could be less than 30 business days
depending on the exigency of the circumstances and other relevant
considerations.
---------------------------------------------------------------------------
\9\ Paragraph (a) of the current regulation states that any
person adversely affected by any requirement of this part may file a
petition. 17 CFR 30.10(a).
---------------------------------------------------------------------------
Should the Commission ultimately determine to terminate any
exemptive relief, it proposed that the Commission would be required to
notify the affected person in writing setting forth the particular
reasons why relief is no longer warranted and issue an Order
terminating exemptive relief to be published in the Federal Register.
Proposed Sec. 30.10(c)(2)-(4) provided further that any Order
terminating exemptive relief would set forth an appropriate time frame
for the orderly transfer or close out of any accounts held by U.S.
customers impacted by such an Order. Finally, proposed Sec. 30.10
(c)(5) provided that any person whose relief has been terminated may
re-apply for exemptive relief 360 days after the issuance of the
relevant Order by the Commission if the deficiency causing the
revocation has been cured or relevant facts and circumstances have
changed.
III. Comments
The Commission received three comment letters on the Proposal from
the Intercontinental Exchange, Inc. (ICE); the Futures Industry
Association (FIA); and the CME Group Inc. (CME Group).\10\ Each of the
commenters commended the long-standing success of the Commission's
program for regulatory deference set forth in Sec. 30.10 and generally
supported the Proposal to provide greater transparency to the process
by which the Commission may terminate exemptive relief.
---------------------------------------------------------------------------
\10\ The comment letters can be found at: https://comments.cftc.gov/PublicComments/CommentList.aspx?id=3002.
---------------------------------------------------------------------------
Both CME Group and FIA urged the Commission to adhere to the
standard set forth in appendix A regarding principles of regulatory
comity. In particular, these commenters noted that the Commission, in
consideration of any petition submitted pursuant to Sec. 30.10(a),
should take into account the extent to which U.S. persons or contracts
regulated by the Commission are permitted to engage in futures-related
activities or be offered in the country from which an exemption is
sought. Both commenters recognized that complementary regulatory
programs of mutual recognition across jurisdictional boundaries reduce
artificial barriers to market access, encourage liquidity, promote
price discovery, and mitigate market fragmentation. Otherwise, market
intermediaries will be required to comply with more costly, overlapping
regulation that fail to take into account the market structure and
participants in local markets.
With respect to specific rule text, both ICE and FIA requested that
the final regulation provide all market participants--and not simply
the foreign regulator or SRO to which the Order was issued--with notice
and opportunity to comment on any notification by the Commission of its
intention to terminate exemptive relief. Both commenters noted that
market intermediaries taking advantage of such relief would be better
positioned to plan for, and potentially mitigate, any possible business
and market disruptions resulting from the termination of relief with
formal notice from the Commission.
IV. Final Rule
The Commission has considered the comments from ICE, FIA, and CME
Group and is adopting Sec. 30.10(c) as proposed, with two
modifications. The Commission agrees with comments that market
intermediaries taking advantage of such relief and other market
participants impacted by the potential termination of relief may
provide helpful insight to the Commission as it considers whether
termination is appropriate. Accordingly, the Commission is adopting a
change to proposed Sec. 30.10(c)(2) to provide parties other than the
affected person with notice of and opportunity to comment on any
potential termination of relief.
Revised Sec. 30.10(c)(2) will require the Commission to publish on
its website any notice of an intention to terminate relief. The
Commission expects that the notice would be published on the website at
substantially the same time that it is sent to the affected person,
subject to any logistical or similar considerations. In this manner,
market intermediaries--and derivatively, their U.S. customers--will be
prompted to communicate with the Commission regarding any issues
relevant to the potential termination of relief, including those
regarding the potential transfer of customer accounts and property. The
Commission also is adopting a corresponding change to Sec. 30.10(c)(3)
to provide persons other than the affected party with the opportunity
to respond to the notification in writing no later than 30 business
days following the publication on the Commission's website of the
notification, or at such time as the Commission permits in writing
(which could be more or less than 30 business days, depending on the
exigency of the circumstances and other relevant considerations).
V. Related Matters
A. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) requires that Federal agencies
consider whether the rules that they issue will have a significant
economic impact on a substantial number of small entities and, if so,
to provide a regulatory flexibility analysis regarding the impact on
those entities. Each Federal agency is required to conduct an initial
and final regulatory flexibility analysis for each rule of general
applicability for which the agency issues a general notice of proposed
rulemaking.\11\
---------------------------------------------------------------------------
\11\ See U.S.C. 601 et seq.
---------------------------------------------------------------------------
As noted in the Proposal, this rule would affect foreign members of
foreign boards of trade who perform the functions of an FCM. While the
RFA may not apply to foreign entities,\12\ the Commission previously
determined that FCMs should be excluded from the definition of small
entities.\13\ Accordingly, the Chairman, on behalf of the Commission,
hereby certifies, pursuant to 5 U.S.C. 605(b), that the final
regulations will not have a significant impact on a substantial number
of small entities.
---------------------------------------------------------------------------
\12\ See 13 CFR 121.105 (noting that a small business is a
business entity organized for profit, with a place of business
located in the U.S., and which operates primarily within the U.S.,
or which makes a significant contribution to the U.S. economy
through payment of taxes or use of American products, materials or
labor).
\13\ See, e.g., Policy Statement and Establishment of
Definitions of ``Small Entities'' for purposes of the Regulatory
Flexibility Act, 47 FR 18618, 18619 (Apr. 30, 1982).
---------------------------------------------------------------------------
B. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA) imposes certain
requirements on Federal agencies, including the Commission, in
connection with their conducting or sponsoring any collection of
information, as defined by the PRA. Under the PRA, an agency may not
conduct or sponsor, and a person is not required to respond to, a
collection of information unless it displays a currently valid control
number from the Office of Management and Budget (OMB). The final
regulations adopted would result in a collection of information within
the meaning of the PRA, as discussed below. Therefore, the Commission
is submitting the Final Rules to OMB for approval.
As discussed in the Proposal, final Sec. 30.10(c)(2) will result
in a collection of information within the meaning of the PRA, as
discussed below. This final rule contains a collection of information
for
[[Page 15362]]
which the Commission has not previously received control numbers from
the Office of Management and Budget (OMB). As noted in the Proposal,
the Commission has submitted to OMB an information collection request
to obtain an OMB control number for the collection contained in this
proposal in accordance with 44 U.S.C. 3507(d) and 5 CFR 1320.11.
Specifically, final Sec. 30.10(c)(3) provides any party affected
by the Commission's determination to terminate relief with the
opportunity to respond to the notification in writing no later than 30
business days following the receipt of the notification, or at such
time as the Commission permits in writing. The Commission estimates
that, if adopted, it would receive one response to this collection
resulting in eight burden hours annually.
In the Proposal, the Commission invited the public and other
Federal agencies to comment on any aspect of the proposed information
collection requirements discussed therein.\14\ The Commission did not
receive any such comments.
---------------------------------------------------------------------------
\14\ Proposal, 84 FR at 32107.
---------------------------------------------------------------------------
C. Cost-Benefit Considerations
1. Summary
Section 15(a) of the CEA \15\ requires the Commission to consider
the costs and benefits of its actions before promulgating a regulation
under the CEA or issuing certain orders. The baseline for this
consideration of costs and benefits is the current status, where the
Commission has not codified the procedures by which the Commission may
terminate exemptive relief issued pursuant to Sec. 30.10(a). As noted
in the Proposal, the Commission has not yet terminated such relief, so
the Commission has not yet implemented a procedure for terminating such
exemptions. Moreover, the Commission has limited relevant or useful
quantitative data to assess the potential costs and benefits of the
final regulation Sec. 30.10(c). Accordingly, the Commission generally
considered the costs and benefits of final regulation Sec. 30.10(c) in
qualitative terms. The Commission invited comment on its preliminary
consideration of the costs and benefits associated with the proposed
changes to Sec. 30.10,\16\ and received no such comments.
---------------------------------------------------------------------------
\15\ 7 U.S.C. 19(a).
\16\ Id.
---------------------------------------------------------------------------
As a general matter, final Sec. 30.10(c) will inform the public,
affected persons and market participants of the basis on which the
Commission may terminate exemptive relief pursuant to Sec. 30.10(a)
and establishing a process whereby an affected party would first be
notified and given an opportunity to respond before the Commission
would take any action. The affected party will benefit from the clear
process set forth in the final regulation. The affected person will
only incur costs in connection with the final regulation to the extent
that the Commission identified a basis for terminating the exemption
and notified the party of that basis. Similarly, market participants
and other interested members of the public would incur costs in
connection with responding to the posting of the notice on the
Commission's website. Those costs would include reviewing and
responding to the notification, which the Commission believes would
vary depending on the circumstances, including the stated basis for
termination. As stated above, the Commission believes that 30 days, or
such additional or less time as the Commission may permit in writing
due to any exigent circumstances, will be sufficient for the affected
person and other interested parties to develop a response while
allowing the Commission to take timely action to consider their
interests.
The Commission requested comment on the potential costs and
benefits of proposed Sec. 30.10(c), including, where possible,
quantitative data, and on any alternative proposals that might achieve
the objectives of the proposed regulation, and the costs and benefits
associated with any such alternatives.\17\ The Commission did not
receive any such comments.
---------------------------------------------------------------------------
\17\ Proposal, 84 FR 32108.
---------------------------------------------------------------------------
2. Section 15(a) Factors
Section 15(a) specifies that the costs and benefits shall be
evaluated in light of five broad areas of market and public concern:
(1) Protection of market participants and the public; (2) efficiency,
competitiveness, and financial integrity of the futures markets; (3)
price discovery; (4) sound risk management practices; and (5) other
public interest considerations.
The Commission is considering the costs and benefits of these rules
in light of the specific provisions of Section 15(a) of the CEA:
a. Protection of Market Participants and the Public. Section
15(a)(2)(A) of the CEA requires the Commission to evaluate the costs
and benefits of a proposed regulation in light of protection of market
participants and the public. The final regulations will benefit
affected persons, market participants and the public by setting forth a
clear procedure for the Commission's termination of exemptive relief
issued pursuant to Sec. 30.10(a). The final regulations will provide
affected persons, market participants and the public with a reasonable
timeframe to communicate any concerns to the Commission and, if
necessary, for the orderly transfer of any accounts held by U.S.
customers impacted by an order terminating relief.
b. Efficiency, Competitiveness, and Financial Integrity of Markets.
Section 15(a)(2)(B) of the CEA requires the Commission to evaluate the
costs and benefits of a proposed regulation in light of efficiency,
competitiveness, and financial integrity considerations. The Commission
has not identified a specific effect on the efficiency and financial
integrity of markets as a result of the proposed regulations. There may
be a minor impact from termination of an exemption on the
competitiveness of futures markets. Foreign futures and options may
compete directly or indirectly with contracts listed on DCMs. Due to
legal restrictions in foreign jurisdictions, the only way that U.S.
customers may access certain foreign contracts may be through an exempt
foreign firm. The termination of any exemptive relief therefore may
reduce the available options for U.S. market participants.
c. Price Discovery. Section 15(a)(2)(C) of the CEA requires the
Commission to evaluate the costs and benefits of a proposed regulation
in light of price discovery considerations. The Commission believes
that the final regulations will not have any significant impact on
price discovery.
d. Sound Risk Management Practices. Section 15(a)(2)(D) of the CEA
requires the Commission to evaluate the costs and benefits of a
proposed regulation in light of sound risk management practices. The
Commission believes that the final regulations will not have a large
impact on the risk management practices of the futures and options
industry. However, to the extent that having a transparent process for
terminating exemptions issued to foreign regulatory or self-regulatory
organizations on behalf of individual firms may encourage an increased
offer and sale of contracts that more closely match the hedging needs
of particular U.S. market participants, the practice of sound risk
management might be improved slightly.
e. Other Public Interest Considerations. Section 15(a)(2)(E) of the
CEA requires the Commission to evaluate the costs and benefits of a
proposed regulation in light of other
[[Page 15363]]
public considerations. The Commission believes that having a
transparent process for terminating an exemption from registration
will, in the event that the Commission believes such a termination may
be warranted, provide an appropriate notice and opportunity to comment
to the public, affected persons, exempt Sec. 30.10 firms, and market
participants who may be affected by the termination of an order of
Sec. 30.10 exemption.
3. Antitrust Considerations
Section 15(b) of the CEA requires the Commission to take into
consideration the public interest to be protected by the antitrust laws
and endeavor to take the least competitive means of achieving the
objectives of the CEA in issuing any order or adopting any Commission
regulation. The Commission has determined that the final amendments to
Sec. 30.10 have no anticompetitive effects. The final regulation is a
procedural rule that will not cause a change in the behavior that would
alter the level playing fields of regulated entities.
List of Subjects in 17 CFR Part 30
Consumer protection, Fraud.
For the reasons set forth in the preamble, the Commodity Futures
Trading Commission amends 17 CFR part 30 as follows:
PART 30--FOREIGN FUTURES AND OPTIONS TRANSACTIONS
0
1. The authority citation for part 30 continues to read as follows:
Authority: 7 U.S.C. 1a, 2, 6, 6c, and 12a, unless otherwise
noted.
0
2. Add paragraph (c) to Sec. 30.10 to read as follows:
Sec. 30.10 Petitions for exemption.
* * * * *
(c)(1) The Commission may, in its discretion and upon its own
initiative, terminate the exemptive relief granted to any person
pursuant to paragraph (a) of this section, after appropriate notice and
an opportunity to respond, if the Commission determines that:
(i) There is a material change or omission in the facts and
circumstances pursuant to which relief was granted that demonstrate
that the standards set forth in appendix A to this part forming the
basis for granting such relief are no longer met; or
(ii) The continued effectiveness of any such exemptive relief would
be contrary to the public interest or inconsistent with the purposes of
the exemption under paragraph (a) of this section; or
(iii) The arrangements in place for the sharing of information with
the Commission do not warrant continuation of the exemptive relief
granted.
(2) The Commission shall provide written notification to the
affected party of its intention to terminate an exemption pursuant to
paragraph (a) of this section and the basis for that intention. Such
written notification also shall be published prominently on the
Commission's website.
(3) The affected party may respond to the notification in writing
no later than 30 business days following the receipt of the
notification, or at such time as the Commission permits in writing. Any
other person may respond to the notification in writing no later than
30 business days following the publication on the Commission's website
of the written notice issued to the affected party, or at such time as
the Commission permits in writing.
(4) If, after providing any affected person appropriate notice and
opportunity to respond, the Commission determines that relief pursuant
to paragraph (a) of this section is no longer warranted, the Commission
shall notify the person of such determination in writing, including the
particular reasons why relief is no longer warranted, and issue an
Order Terminating Exemptive Relief. Any Order Terminating Exemptive
Relief shall provide an appropriate timeframe for the orderly transfer
or close out of any accounts held by U.S. customers impacted by such an
Order.
(5) Any person whose relief has been terminated may apply for
exemptive relief 360 days after the issuance of the Order Terminating
Exemptive Relief if the deficiency causing the revocation has been
cured or relevant facts and circumstances have changed.
Issued in Washington, DC, on March 9, 2020, by the Commission.
Robert Sidman,
Deputy Secretary of the Commission.
Note: The following appendix will not appear in the Code of
Federal Regulations.
Appendix to Foreign Futures and Options Transactions--Commission Voting
Summary
On this matter, Chairman Tarbert and Commissioners Quintenz,
Behnam, Stump, and Berkovitz voted in the affirmative. No
Commissioner voted in the negative.
[FR Doc. 2020-05097 Filed 3-17-20; 8:45 am]
BILLING CODE 6351-01-P
